China to inject $62 bn in policy banks to boost ‘New Silk Road’ - report

COMMENTS (84) Your comment is awaiting moderation. inject $62 bn in policy banks to boost ‘New Silk Road’ - report Published time: April 20, 2015 22:08 Edited time: April 21, 2015 07:57 Get short URL Reuters/Petar Kujundzic Reuters/Petar Kujundzic 349213 Tags Banking, China, Investment China will reportedly allocate $62 billion of its foreign exchange reserves to three state-owned “policy banks” in order to support its New Silk Road project aimed at creating infrastructure links with foreign markets. The project called "One belt, One road", also known as the New Silk Road, includes plans to build roads, ports, railway systems and other infrastructure from China into the Middle East, Central, South and Southeast Asia to create demand for China’s industrial exports, as it already sees oversupply at home. The People’s Bank of China will direct $32 billion to China Development Bank (CDB) and $30 billion to Export-Import Bank of China (EXIM), the Caixin magazine said in a report on its website. The third bank to receive cash from China's central bank is Agricultural Development Bank of China (ADBC); another state-owned bank that supports the farming sector. Read more China to invest $46bn in economic corridor with Pakistan - media The capital injection will be carried out through converting entrusted loans into stakes, the journal said, adding that the People's Bank of China will become the second largest shareholder in the China Development Bank and the biggest shareholder of the EXIM bank. Chinese government said last week it had approved the reform plans for CDB, Exim Bank and Agricultural Development Bank proposed by the Central Bank in attempts to advance finance projects amid the current economic slowdown. The government has been saying for years it intended to transform these three policy banks into commercial institutions, but little progress has been seen. Policy banks in China do not accept deposits and fund themselves mainly by selling bonds carrying an explicit government guarantee. The banks sell bonds in Yuan within China and USD bonds in the offshore market. The foreign exchange reserves of China, considered the worlds largest, fell by $110 billion to $3.7 trillion in the first quarter of 2015. China had previously used part of its foreign currency reserves to recapitalize major state-run banks, help them restructure and list their shares. 759 characters COMMENTS POLICY BESTNEWESTOLDEST M.M.SHERAZIabout 22 hours ago Long Live Pakistan, Love Live China, the Friendship of all weathers... RECOMMEND112 STRINGabout 22 hours ago China has no plan yet to develop her south and western part , even though they have plan but it will take them 100 years , All the universities and industry exit in Eastern china with port cities,.. For China Eastern and western part has as contrast as Pak has Lahore and DI Khan . Even China are facing extremism and terrorism in south western cities .. Pak has to made on companies to build coal based power plant , Chines can not afford to work with exiting force in Pak. RECOMMEND23 HUZAIFAHabout 22 hours ago Big Opportunity for Pakistan. RECOMMEND67 KAMAL PASHA.about 22 hours ago China is the most trusted friend since day one. Pakistan should always receiprocate their help. RECOMMEND55 HARMONYabout 22 hours ago "India is concerned about China’s growing investment in Pakistan". Why? Prosperity and peace for any country in the region is good for others in the region and rubs along! RECOMMEND96 KAMAL PASHA.about 22 hours ago China has always been good friend from the day one. Pakistan must receiprocate all their help. There is too much for both in maintaining their good friendship. RECOMMEND27 KAMAL PASHA.about 22 hours ago Both countries have spent long time about this Gwadar project. They will fortified this area in suchna way that nothing will go wrong and not even bird will fly over these areas. It will be good for insurgents to keep themselves away from these areas. It is upto them. RECOMMEND27 TARIQ, LAHOREabout 22 hours ago Pakistan India are natural partners but the their BIG mistake is their failure to resolve the Kashmir issue - this has, is and will cost much more in the future if this issue is not addressed!! RECOMMEND53 ASHEIKHabout 22 hours ago No amount of additional energy is enough, if power theft cannot be controlled. We are our own worst enemies. RECOMMEND36 GAURAV ARYAabout 22 hours ago @Harmony - We are not concerned. Just don't mess it up like everything else. Rest if fine. Its your sovereign matter. We are no one to have an opinion. Its between China and Pakistan. RECOMMEND85 AHMEDabout 22 hours ago very informative article!!! whether one likes it or not credit for this investment goes to PMNS!! RECOMMEND22 SAEED MASOODabout 22 hours ago These projects put together are enormous by any standard...the government must announce very clearly how it will be done honestly and successfully on time.Only signing is not enough do the Pakistan side have the capability to fulfill. RECOMMEND13 IRFAN FAROOQUIabout 22 hours ago amazing what a brilliant and well made project..... RECOMMEND20 HARMONYabout 22 hours ago @ahmed - But he prefers building roads and metros more! RECOMMEND7 EHSAN KARIMabout 21 hours ago Most of the money for the purchase (Gwadar) from Oman came from donations, with Prince Ali Salman Mohammad Shah Aga Khan, being the greatest contributor, while the remainder was raised by taxation. RECOMMEND17 MUHAMMADabout 21 hours ago Its a win win for all, China is going to reap the benefits of friendship with Pakistan. India should also work along same lines, forgetting the past, for returning prosperity to the sub-continent. RECOMMEND33 JAINYabout 21 hours ago This will soon be turned as Kalabagh Dam due to route change. Such projects will definitely change people's mind and thinking. Route must not be changed if you want to see progressing Pakistan. ANP and other such parties are already declaring this to be another Kalabagh Dam. Please stick to the original route and make Pakistan Progress. Development leads you to Peace. RECOMMEND12 HANIabout 21 hours ago @Kamal Pasha. Pakistan always does RECOMMEND0 ABC@ABC.COMabout 21 hours ago @Jainy - First make sum thing happen and once single route is up, other (original route) will be peanuts. As fruit from the wave of progress from first route will be tremondous. RECOMMEND5 AAM ADMI about 21 hours ago “China is not building the corridor as an act of charity for Pakistan,” RECOMMEND35 MUHAMMAD FAROOQabout 21 hours ago Huge Chines investment to the tune of billions of dollars in the infrastructure and energy related projects will serve as a catalyst for the economic and social development of the country. The real benefits of this progress will go to common people is a question mark because for that we need a fair and equitable corruption free taxation system and honest implementation of projects for the welfare of the people. RECOMMEND15 ONEEBabout 20 hours ago International energy war between US, Israel, India etc. against Arabs, Chinese etc. is slightly exposed in this article. RECOMMEND9 GURUabout 20 hours ago such a good idea to have the good relation with your neighbor. Be friendly to the one who is friendly to you and then you can do much more with the friendship than just hello and goodbye. You can build many things and be the one who is going to supply the power to the places that need the supply for the long time and place. When you do this it will be a good idea to make the long investment in the good place that will give you the return for the good will of the other place that is the more money and more better life for the common people of the region which is helpful in making the place a better world for the fifty five cents that you will get for your opinion. RECOMMEND5 EUROabout 20 hours ago India can not tap into Central Asia without Pakistan allowing it to. The same goes for land rutes to Afghanistan. For now India can only continue to fund and train terrorists from Afghanistan and send them into Pakistan - as long as it last - as Pakistan is winning this war under General Raheel. RECOMMEND41 EUROabout 20 hours ago Indians should learn from Pakistan-China friendship and quit Kashmir occupation and return Kashmir to Pakistan, her mother country since partition of 1947, and establish friendship with us. After wll, we have more in common with each other then any other nation on this planet. RECOMMEND26 MALIKabout 20 hours ago @Gaurav Arya I hope others think the same way. RECOMMEND9 MGabout 20 hours ago 8000 security persons to protect 8100 workers!!!! Insane. China must be either trying to establish a military base or feeling insecure to core. RECOMMEND18 MALIKabout 20 hours ago China has been a great friend of Pakistan. These are Great projects which will benefit both countries. Some countries will definitely try to disrupt the arrangements. Indian involvement in the insurgency in Baluchistan will be a huge factor in the success of the Projects. Changing the Route will be another sore spot. Like it or not as long as the corrupt Pakistani government stays in power huge portion of this investment will go into their satanic deep pockets. In short, The new Silk Route must be built but it might not be “Silky” and smooth. RECOMMEND7 RAOabout 20 hours ago No matter what, N.Shariff deserves all the praise for bringing China as a great power bearing gifts, help and sincere friendship is not an easy joke but a Herculean task. This might turn out to be a cornerstone in Pak history to emerge as an Asian tiger. For, Pakistan has the people power, nuke power etc along with growing infrastructure in everything. So the prime minister has turned to be a great statesman as long as his political opponents torpedo it. RECOMMEND7 SANDHUabout 19 hours ago Game changer investment for Pakistan. RECOMMEND13 SHAZIA about 19 hours ago after listening to Pakistani s on TV and reading comments on net, i am of firm belief that every third person in Pakistan is a strategic expert . even when economy is in shambles and jobs are nowhere , people are not talking how the job will be created and has Pakistan got enough talent or potential to absorb so called investment, but are happy to see china as counter weight to Americans. All so called money is not investment ONLY but majority is loan, If Chinese get their own manpower , experts and sub let requirements to own industry, it will not be so sweet senario as it is being painted RECOMMEND43 ARYASTANabout 19 hours ago @Euro India totally isolated. RECOMMEND10 ARYASTANabout 19 hours ago @Euro China wont agree. RECOMMEND2 Zabout 19 hours ago @Gaurav Arya I wish all Indians (and Pakistanis) think like that. Thank you. RECOMMEND9 SHUJAAT KHANabout 19 hours ago Hope they have taken into consideration how many tankers will be torched on land route . RECOMMEND6 Zabout 19 hours ago @Jainy Origianl route(s) not going away, only in the interim utilize existing infrastructure and safer areas. So trade activity starts sooner. RECOMMEND4 VICKYabout 19 hours ago I am afraid of a serious reaction from UAE/GCC for 2 reasons; Pak didn't send troops to KSA & 2ndly this Chinese Corridor will hurt the ongoing trade through Dubai & Oman. Gawadar is in actual deep sea while Dubai has just a bay. RECOMMEND10 LAFANGAabout 18 hours ago "China’s new silk road: What’s in it for Pakistan?" Opportunity ... that is if the clueless leadership can see it. They ONLY like to remind people of the FOREX in Pakistan which is ballooned to $18 bn on the back of soft and hard loans. Hardly any achievement. If the leadership doesn't look at short term gains, there is plenty of opportunity in this deal. Chinese don't want to hand out freebies. They would like to make money and also help Pakistan to make money as well i.e. if Pakistanis are willing to. RECOMMEND10 PRASADDECCANIabout 18 hours ago @Harmony That statement spices up the story; otherwise it reads very bland. RECOMMEND2 TURTH SEEKERabout 18 hours ago Not a fan of NS or PML-N but JOB Well done! RECOMMEND6 PRASADDECCANIabout 18 hours ago @SHAZIA China is investing in and/or extending loans to power projects in Pakistan. Importance of a power project is actually not with the project proper, but, with the potential it generates to set up downstream industries. So, one must accept that China is definitely helping you, and, it is up to you how your private & public sectors take advantage of the available power and invest further which in turn spurs job market. RECOMMEND5 LAFANGAabout 18 hours ago @Vicky "I am afraid of a serious reaction from UAE/GCC for 2 reasons; Pak didn't send troops to KSA & 2ndly this Chinese Corridor will hurt the ongoing trade through Dubai & Oman. Gawadar is in actual deep sea while Dubai has just a bay." Well they can hurt as much as they want. It's called competition and Pakistan has a bigger gun to defend it's side of the Persian gulf and they know it. They can't push Pakistan too hard or it's bye bye to GCC and hello to Iran. RECOMMEND9 ANSabout 18 hours ago @Euro Heard of Chahbahar Port by India in Iran? Alternate route to Afghanistan and competitor to Gwadar coming up there. RECOMMEND9 NASIR NADEEM about 18 hours ago great initiative.credit goes to NS and Mr She.This project must rollout on war footing and should be completed within 3-4 years .It will be a game changer for both countries. RECOMMEND7 TOMabout 17 hours ago @Harmony, Absolutely agree. Indians wish all the very best to Pakistan in building its economy. RECOMMEND5 KAZIM REZAabout 17 hours ago The strategic importance has mentioned by Zofeen T Ebrahim's brief analysis that "the port could turn into China’s naval base in the Indian Ocean, enabling Beijing to monitor Indian and American naval activities."If US had any plan to encircle China with the various Asian powers through land or maritime borders that is not workable at least in Tibet-Kashmir sides due to port Gwadar- Kashgar economic corridor. It's interesting.So chances of any future war by Asian nations have further lessened.A symmetry is being established against India- US axis and more economic competition more non lethal competition among the great nations. Thanks Dawn for focusing such a positive news item. RECOMMEND1 NASIR NADEEM about 17 hours ago @SHAZIA do;nt live in fool,s paradise.even a blind can see the opportunities due to this land mark project. how come there will be no job opportunity even chines bring their own people.Still opportunities will be there.construction;Transport;shipping;and general industry will be a big business during and in post build scenario. long live Pakistan. RECOMMEND1 PROUSTabout 17 hours ago Guide us through our troubled times, our trusted friend. Thank you. RECOMMEND8 THINKERabout 17 hours ago No friend is indeed friendship without personnel interest, told by world ever political science teacher chanakya' ,5000BC RECOMMEND10 ASHOK KUMAR LALabout 17 hours ago But why Gilgit Baltistan and north Pakistan is being placed under China administrative control RECOMMEND0 ZAHIDabout 17 hours ago The question is what is in it for the regions except Upper Punjab? RECOMMEND0 ONE TRICK PONYabout 17 hours ago This investment will be a game changer for Pakistan growth. I can see why India and U.S are worried. This shows you who really is our friend and enemy. RECOMMEND7 ZUBAIRabout 16 hours ago So,this is the startup of development from Urumqi to Gwadar .It will probably coverup the physical link of Allama Iqbal's Nile ke sahil se ta ba khak e Kashgar. RECOMMEND1 MUZAFFAR ALIabout 16 hours ago Friends can do only so much....Pakistan needs to put its own house in order now. RECOMMEND1 SIDDHARTH SAMAIYAabout 16 hours ago China is giving soft loan to Pakistan to fulfill its own purpose.. How ? 1.Pakistan will pay interest on debt to China . 2.Through Gwadar they could save more than $300 billion annually. 3.Will Expand the trade activities with Central Asia , Africa n Middle East. 4.Will use Gwadar as a military base against their rivals . 5.Through pakistan they could increase the flow of goods and capital . What will Pak get ?? Electricity - Which pak would have increase with its own resources ... 2.Employment !! - I don't think bcoz gwadar is now a part of china for at least 40 yrs. Yes Pakistani would work as a lobourer in their aka's region 3.Reduction in funds from West plus bitter relations with India .. China is clever .. It won't give you anything for free ... RECOMMEND3 ZACK KHANabout 15 hours ago Pakistan should ask China to stop persecuting Muslims in China! If you don't stand for something, you will fall for everything! RECOMMEND10 ZACK KHANabout 15 hours ago @ahmed WAKE UP...!! RECOMMEND1 CYRUSabout 15 hours ago Gwadar port to Islamabad. That's where the money is. So much is stolen from the docks in Karachi that Pakistan AND China needed a secure seaport. We could call it the Silk Road because silk dresses and dress creations will exported by China, and so much more. That may include military weapons and vehicles if they are in the budget. RECOMMEND1 MR.GOOabout 15 hours ago If honest work kicks off to materialize this imvestment, will the scope of Civil Engineers increase in Pakistan ? Tell me ..tell me !! RECOMMEND3 ZACK KHANabout 15 hours ago @ahmed nawaz is clueless as to the severity of this project and has failed to reap benefits for Pakistan to the extent he should have! This is true as a nation we have no idea what in it for us! RECOMMEND0 AWabout 15 hours ago If Pakistan can get rid of religious influence on Politics and governance, then Pakistan can be successful as a member of the world community and for maximizing socio-economic development of its own people. Let Pakistan be Pakistan as envisioned by Jinnah and not a religious republic PLEASE for the sake of the Country RECOMMEND9 CYRUSabout 14 hours ago @Kamal Pasha. Absolutely true. RECOMMEND3 USMANabout 14 hours ago @Euro Err, Kashmir's are not interested in going back to Pakistan or India, actually they are demanding the end of occupation from all three: Pakistan, India and China. RECOMMEND0 CYRUSabout 14 hours ago @asheikh No doubt about that. India has the same problem, and in Northwest India the problem is even worse than in Pakistan. If you can believe it. In India no electricity means no electricity, but it also means no fresh water. In city neighborhoods electric pumps are all that draw water. RECOMMEND1 CYRUSabout 14 hours ago @Saeed Masood The PPP could not even get the deal signed. China does not like their money going into political pockets. The PPP and MQM wanted to maintain Karachi port's dominance, but could not stop the smuggling, the theft of goods and the pilferage of shipping containers. Or were afraid to. RECOMMEND0 CYRUSabout 14 hours ago @Jainy Without dams Pakistan will eventually be washed into the Arabian Sea. RECOMMEND0 HARMONYabout 14 hours ago @AW - I agree religion should be no business of state and your advice for Pakistan but at the same time it would have been fair on you to point out India seems to be regressing by promoting Hindutava. RECOMMEND1 CYRUSabout 14 hours ago @Oneeb You mean Pakistani paranoia has been only slightly exposed. You have enlightened us on the matter. RECOMMEND0 SIDNEYabout 14 hours ago The only thing that matters, irrespective of whether US and India are worried, is for China to help Pakistan develop and this will be good for the whole region. Afterall, stability for the region requires all countries do grow and the US does not live in the region. India should support such initiatives RECOMMEND7 NEPTUNE SRIMALabout 13 hours ago looking at it from another angle: China is building a road across Pakistan and building a port mostly for it's own use without having to pay any access charge and with money lent to Pakistan by China which Pakistan will eventually have to pay back. The projects will provide jobs for thousands of Chinese workers in Pakistan who will be protected by a special division of Pakistani security force raised and maintained with Pakistani money. China will also be constructing coal burning power plants -- the age of which is now past -- most likely such power plants will have to buy carbon credits in future from the global exchanges making them uneconomical. I fervently hope that this deal is a game changer for Pakistan, will bring economic prosperity to Pakistan and will provide jobs to unemployed Pakistani youth who will then move away from extremist philosophies. But seriously, I see a lot of benefits to China -- looks like Pakistan has been badly conned. RECOMMEND2 MANZOORabout 12 hours ago No mention of Nawaz Sharief, the main architect of this plan in the whole article. Says something about the policy of Dawn RECOMMEND1 JAVIDabout 12 hours ago Thanks to Musharaf. He started Gawader port. RECOMMEND1 PAVANabout 12 hours ago How many Pakistanis are going to get jobs. The only country which benefits is China. China has gone and made friendships with the countries which are strategically beneficial for them. They are not doing a charity here. Its heartening to know that Pakistan is getting mobbed by the Chinese. RECOMMEND2 EXCELSIOR LONDONabout 11 hours ago should there be a CIP (China-Iran-Pakistan) gas pipeline? RECOMMEND1 SALMAN AHMED about 10 hours ago @Turth Seeker just wait and see :-) RECOMMEND1 GULabout 9 hours ago Pakistan will benefit from china tremendously..we should support pakistan China cooperation whole heartedly RECOMMEND2 RAMAabout 8 hours ago Beware of China, they are not supporting Pakistan and looking only for their strategic interest, remember what happened to Vietnam after US left . RECOMMEND1 SHAHabout 8 hours ago I have observed that the map above has Bay of Bengal where the Arabian sea should be. RECOMMEND1 AYERabout 7 hours ago Its hard to understand the hyperbole and gushy language from commentators about Pak - China friendship. Everyone knows that it is only National interests that matter. Today Saudi Arabia is very much on the side of Israel over the Iran issue though it may not publicly say so. RECOMMEND1 SHEIKH KHALIDabout 6 hours ago @Rao China just came in to pluck the "ripe apple" at U.S. behest. That was the plan all along behind "War in Afghanistan". it is a case of Good Cop, Bad Cop, and certain Money Lenders. RECOMMEND0 SYED AHMED ABIDabout 6 hours ago History would remember Zulfiqar Ali Bhutto as a great visionary who initiated the Pak China friendship the fruits of which are materialising now. RECOMMEND1 JUS_ANOTHER_GUYabout 6 hours ago @One Trick Pony who told you who is worried? or is it just another pint of pakistani imaginative conspiracy theories, 46 billion is nothing for US or for that matter even India, and its not even Donation , Why would someone invest somewhere, they will earn 460 billion out of 46 billion , mark my words, get ready for deceive again RECOMMEND0 SHEIKH KHALIDabout 6 hours ago Meta courtesy 25° 8'24.39"N, 62°19'45.22"E. Google Earth. The photo at that location. RECOMMEND0 ADHAWKabout 3 hours ago China is a strategic partner linked to Pakistan only in its rivalry with India. There is no cultural affinity or people-to-people links. Want to see real friends, check out U.S./Canada or U.S./U.K.

Kashghar-Gwadar trade route: KP Assembly passes unanimous resolution against proposed changes

The Express Tribune HOME During his visit to Pakistan, China’s president will discuss a raft of energy and infrastructure deals as part of wider ambitions to open new trade and transport routes across Asia. Chinese President Xi Jinping’s visit to Pakistan had already generated a sense of nervous anticipation. Originally expected to come in September last year, Xi’s visit was postponed in the wake of prolonged anti-government protests in Islamabad, with the government not want anything untoward happening this time round. As well as signing a raft of energy, trade and investment agreements, the Chinese president will inaugurate Balochistan’s Gwadar port, which is part of the 3,000 kilometre-long strategic China-Pakistan Economic Corridor (CPEC) which could radically alter the regional dynamics of trade, development and politics. Gwadar, once a part of Oman before it was sold to Pakistan in 1958, is one of the least developed districts in Balochistan province. It sits strategically near the Persian Gulf and close to the Strait of Hormuz, through which 40 per cent of the world’s oil passes. The construction and operation of this multi-billion dollar deep-sea port at Gwadar was contracted to a Chinese company in 2013 and some analysts argue that the port could turn into China’s naval base in the Indian Ocean, enabling Beijing to monitor Indian and American naval activities. Establishment of the China-Pakistan Economic Corridor (CPEC) was first proposed by Chinese premier Li Keqiang during his visit to Pakistan in May 2013. “Our two sides should focus on carrying out priority projects in connectivity, energy development and power generation,” Li said at the time. Source: SCMP Source: SCMP Pakistan’s strong ties with China may mean the initiative succeeds where other regional energy projects have become mired in security problems and political disagreements, says Vaqar Zakaria, energy sector expert and managing director of environmental consultancy firm Hagler Bailley Pakistan. “The Pak-Iran pipeline is on hold, the World Bank-backed Central Asia South Asia Electricity Transmission and Trade Project has to contend with security issues relating to the passageway through Afghanistan, and importing power from India has to wait for core issues between the two countries to resolve,” he said. Energy-poor Pakistan certainly seems to have found a saviour in China, which has promised to stand by the country in its dark hour (parts of the country suffer power cuts for up to 18 hours a day). So overwhelmed is President Mamnoon Hussain that he has predicted the economic corridor will be a “monument of the century” benefitting “billions of people” in the region. Zakaria believes projects conceived under CPEC will ease Pakistan’s energy shortages and make a “substantial difference in the long term with both generation and transmission covered.” However, coal figures prominently and Chinese money is “timely and useful” for cash-strapped Pakistan struggling to finance energy projects from western donors. The CPEC project will include building new roads, an 1,800-kilometre railway line and a network of oil pipelines to connect Kashgar in China’s western Xinjiang region to the port of Gwadar. The project also includes an airport at the port and a string of energy projects, special economic zones, dry ports and other infrastructure. The estimated cost is expected to be US$75 billion, out of which US$45 billion will ensure that the corridor becomes operational by 2020. The remaining investment will be spent on energy generation and infrastructure development. China’s new silk roads While the trade and energy corridor may be ‘monumental’ for Pakistan, for China it is part of more ambitious plans to beef up the country’s global economic muscle. Chinese officials describe the corridor as the “flagship project” of a broader policy — “One Belt, One Road” — which seeks to physically connect China to its markets in Asia, Europe and beyond. This initiative includes the New Silk Road which will link China with Europe through Central Asia and the Maritime Silk Road to ensure a safe passage of China’s shipping through the Indian Ocean and the South China Sea. “China is not building the corridor as an act of charity for Pakistan,” says Michael Kugelman, a senior associate at the Washington DC based Woodrow Wilson Center. “It will happily fund and build any structure that plays into this goal – whether we’re talking about roads or ports.” Some experts argue this initiative can bring greater cohesion in South Asia, one of the world’s least economically integrated regions. Adil Najam, Dean of the Boston University Pardee School of Global Studies, believes anything that binds the region together is “a good idea” since countries tend to focus on “zero-sum geostrategic posturing” rather than recognising the benefits of integration. India, US worried At the same time, the new silk roads are bound to intensify ongoing competition between India and China –and to a lesser extent between China and the US – to invest in and cultivate influence in the broader Central Asian region, says Kugelman. “India has long had its eyes on energy assets in Central Asia and Afghanistan, even as China has gobbled many of these up in recent years. The US has announced its own Silk Road initiative in the broader region,” he said. India is concerned about China’s growing investment in Pakistan, particularly its recent decision to fund a new batch of nuclear reactors. Pakistan plans to add four new nuclear plants by 2023, funded by China, with four more reactors in the pipeline (adding up to a total power capacity of 7,930 MW by 2030). Many argue that China is supplying nuclear technology to Pakistan in defiance of the Nuclear Suppliers Group (NSG) guidelines, which forbid nuclear transfer to Pakistan as it has not signed the Nuclear Nonproliferation Treaty. China argues that these projects were agreed with Pakistan before it became a member of NSG in 2004. Conflict in Balochistan However, the economic corridor is unlikely to be successful unless there is peace in Gwadar, a district embroiled in conflict. Militant groups opposed to foreign-funded investments are active in the region, with some of them also having attacked Chinese engineers working on the port. This is one reason given by experts for the change of route to pass mostly through Punjab, thereby avoiding some of the country’s most strife-torn areas in the provinces of Balochistan and Khyber-Pakhtunkhwa and much to the chagrin of local legislators. At the same time, China has concerns about the growing influence of radical religious groups in Pakistan in its own province of Xinjiang, which has a significant majority of Uighur Muslims. For now, the Pakistani military plans to train over 12,000 security personnel and form a “special division” to provide security to Chinese personnel working on the economic corridor. Some 8,000 security personnel have already been set out to protect over 8,100 Chinese personnel working on 210 projects across Pakistan. This article was first published in thethirdpole.net TribuneTrade corridor tops Chinese investment bonanza Beijing, Islamabad sign 50-plus agreements worth $28 billion. PHOTO: REUTERSBeijing, Islamabad sign 50-plus agreements worth $28 billion. PHOTO: REUTERS ISLAMABAD: Pakistan and China on Monday signed more than 50 agreements worth $28 billion, mostly covering commercial loans to Pakistani power generation companies, but also including financing agreements for six infrastructure projects that will set in motion work on the eastern trade corridor connecting western China with Gwadar that Beijing wants to see operational before the end of next year. A total of 53 agreements were signed between the two countries, covering a wide range of areas of cooperation. The bulk of the money — $22 billion out of the total $28 billion — would be commercial loans from Chinese banks to Pakistani power generation companies, almost all of them privately owned. The bulk of the money will go to pay Chinese contractors selling equipment for coal-fired power generation units to Pakistani utilities. The signing ceremony was witnessed by Chinese President Xi Jinping and Prime Minister Nawaz Sharif. There are 22 government-to-government agreements that include deals on cultural exchanges, heritage preservation and communications. Another 31 agreements involve the private sector, with the vast majority in the energy sector, according to the Planning Ministry. Of the $6 billion to be spent on non-energy infrastructure, just over $4 billion will go towards filling the gaps in the Eastern Trade Route that will link the hinterlands of western China to Gwadar port. All of the projects will be financed with Chinese loans, offered at concessionary rates. It is unclear how much of the financing will come from the newly created Asian Infrastructure Development Bank, headquartered in and mainly financed by Beijing. Among the transportation infrastructure projects are the $930 million expansion of the Karakoram Highway from Havelian to Thakot, the $260 million funding for the Multan-Sukkur section of the Karachi-Lahore motorway, $136 million for the Gwadar Port East Bay Expressway Project, and $230 million for Gwadar International Airport. The four projects will be critical in meeting the September 2016 deadline set by Beijing to make the Eastern Route of the China-Pakistan Economic Corridor operational. The Eastern Route passes through Gilgit-Baltistan, Khyber-Pakhtunkhwa, Islamabad, Punjab, and Sindh and will link to Gwadar port through the East Bay Expressway along the Makran coastline. This route cuts out the restive areas of Balochistan and K-P, and is aimed at ensuring security for Chinese convoys. Balochistan and the rest of K-P will be included in the Western Route, to be built in the future. The China-Pakistan Economic Corridor portfolio is a $45 billion agreement between Islamabad and Beijing to help develop transportation and energy infrastructure in Pakistan in exchange for access to Gwadar port for the economically disadvantaged areas of western China. “The corridor will link Kashghar in Western China with the deep sea port in Gwadar through a mesh of communication networks comprising a world-class seaport, commercial sea lanes, an airport, highways, railways, fibre optic cables as well as oil and gas pipelines,” said Planning Minister Ahsan Iqbal. Energy projects The financing agreements in the energy sector, worth approximately $22 billion, will help add the capacity to generate 8,370 megawatts of electricity, mostly in coal-fired electricity, though some will also be hydroelectric power. The projects to be financed under those agreements include a 1,000MW solar power project, the $1.8 billion 870MW Suki Kanari hydroelectric power project in K-P, the $1.5 billion 720MW Karot hydroelectric power project in Azad Jammu & Kashmir, and three wind power projects in Thatta collectively expected to generate 200MW. In addition, the government is expecting to use the Chinese financing agreements to make a major push for coal-fired power in Pakistan. The coal projects for which agreements were signed include a $1.8 billion 1,320 MW coal-fired power plant at Port Qasim, and a $900 million coalmine in Thar Block II, expected to generate 3.8 metric tons of coal, along with a $1.9 billion 660MW mine-mouth coal-fired power plant. Other agreements A commercial contract and agreement on the financing to build Lahore’s Orange Line Metro Train, at a cost of $1.6 billion, was also signed by both sides. Other agreements signed include those for provision of material for Tackling Climate Change, pro bono projects in the Port of Gwadar region, establishment of a joint Cotton Bio-Tech Laboratory, establishment of a joint Marine Research Center, Triple Party Agreement between China Central Television, PTV and Pakistan Television Foundation on the rebroadcasting of CCTV-NEWS/CCTV-9 documentaries in Pakistan. In addition, the two governments agreed to establish sister-city relationships between Chengdu (Sichuan province) and Lahore, Zhuhai (Guangdong province) and Gwadar, and Karamay (Xianjian Ugur province) and Gwadar. An agreement to build a liquefied natural gas (LNG) import terminal at Gwadar and the Gwadar-Nawabshah LNG pipeline was also signed but financing details have yet to be sorted out. A financing agreement in implementing the China-Pakistan Economic Corridor between the China Development Corporation and Habib Bank and a cooperation agreement between the Wapda and China Three Gorges Corporation were also inked. A facility operating agreement for Dawood Wind Power project between the Industrial and Commercial Bank of China and PCC of China and HDPPL. Published in The Express Tribune, April 21st, 2015. Like Us On Facebook Follow Us On Twitter Get News Every Evening RELATED STORIES 21 Apr 2015chinas-president-xi-jinping-stands-next-to-a-chinese-national-flag-in-beijing-2-2-2-2-2-2-2-2-2-3-2-2-2-3-2Opposition unites to greet Chinese president 20 Apr 2015china-beijing-xi-jinping-pakistan-nawaz-sharif-meeting-cn-3-2China’s security as important as Pakistan’s, Nawaz tells Chinese president 21 Apr 2015news-in-brief-800x600-3356Bilateral ties: Chinese delegation visits LCCI by TaboolaSponsored LinksYou May Like New Solution That Stops Snoring My Snoring Solution 11 of the Worst Airports in the World Popcornews Man Finds Secret Room In Office -- Where It Led Was Astounding ViralNova How Coconut Oil Will Change Your Life PerfectVacation.co Say Goodbye To Snoring With This Cool Trick My Snoring Solution 10 Amazing Easter Eggs You Missed In Famous Movies LOL WOT Reader Comments (1) ALL COMMENTSREADER'S RECOMMENDATIONS Shah 23 minutes ago Reply Long Live Pak China Friendship Recommend2 Leave Your Reply Below Name (required) Email Location Web Your comments may appear in The Express Tribune paper. For this reason we encourage you to provide your city. The Express Tribune does not bear any responsibility for user comments. Notify me of followup comments via e-mail Comments are moderated and generally will be posted if they are on-topic and not abusive. For more information, please see our Comments FAQ. Notify me of new posts by email. Connect With Tribune News Like Us On Facebook Follow Us On Twitter Get News Every Evening PAKISTAN LATEST STORIES 12 minutes ago Shabana Azmi to star in British TV drama 'Capital' IANS 33 minutes ago 'Pure diamond rings' gifted to all guests at a royal wedding in Kuwait Entertainment Desk 41 minutes ago Shahid Kapoor's fiancé Mira Rajput's farewell pictures Entertainment Desk an hour ago Orange glasses may help you sleep better IANS an hour ago Malaysia urged to punish Muslims over 'cross' protest AFP an hour ago PFDC plans to expand to India online IANS an hour ago I am not open for skin show on ramp: Mariya Suhaib IANS 2 hours ago The violence in our heads: Living with Schizophrenia Zohaib Amjad / Crative: Eesha Azam 3 hours ago NTDC board seeks inquiry against suspended chief Zia Tanoli 3 hours ago RECENT SLIDESHOWS <> Summer fantasy Urban apparel Bridal galore A burst of colour RECENT VIDEOS <> Chinese President Xi arrives in capital to rousing welcome Chinese President Xi arrives in capital to rousing welcome Pakistan successfully test fires Ghauri Missile Pakistan will not handover Imran Farooq murder suspects to UK govt: Nisar Sponsored LinksYou May Like 15 Glamour Models and Actress of India TenetNews.com 10 Foods That Help Burn Calories and Lose Weight Womanitely The Secret to Finishing Your Degree Quickly Universities Academy Top 11 Most Incredible Waterfalls in the World Professor.BUZZ by Taboola MORE IN PAKISTAN Pakistan high on Chinese diplomatic agenda: Xi Jinping Pakistan SindhPunjabBalochistanKP & FATAJammu & KashmirGilgit Baltistan Life & Style BooksMusicTV & FilmFashionFoodGossip Multimedia SlideshowsVideos Opinion EditorialLetters A -- Z BlogsBusinessWorldSportsMagazine Others About usRSS FeedsGoogle+Subscribe to the PaperContact usCareersStyle GuideOnline Advertising TariffCopyrightsCode of ethics This material may not be published, broadcast, rewritten, redistributed or derived from. Unless otherwise stated, all content is copyrighted © 2015 The Express Tribune News Network. Technical feedback? webmaster@tribune.com.pk The Express Tribune The Express Tribune The Express Tribune --•- Kashghar-Gwadar trade route: KP Assembly passes unanimous resolution against proposed changes APP February 07, 2015 PESHAWAR: The Khyber Pakhtunkhwa Assembly with Speaker Asad Qaisar in the chair on Friday unanimously adopted a resolution against proposed changes in the trade route of Kashghar to Gwadar project and urged the federal government to maintain the same route as agreed upon between governments of Pakistan and China. The resolution was jointly moved by Qaumi Watan Party parliamentary leader Sikandar Hayat Khan Sherpao, Awami National Party parliamentary leader Sardar Hussain Babak, Pakistan Muslim League-Nawaz parliamentary leader Sardar Aurengzeb Nalota, Pakistan People Party parliamentary leader Muhammad Ali Shah Bacha, Provincial Ministers Mushtaq Ahmad Ghani and Shah Farman, Mufti Fazal Ghafoor of JUI-F and Malik Behram Khan of Jamat-e-Islami. The resolution read out by the movers stated that the federal government should avoid making alterations in the trade route of this mega project. It said that the governments of Pakistan and China have agreed to the trade route to be constructed starting from Kashgar (China) to Gwadar via Silk route to Abbotabad, Mianwali, Dera Ismail Khan, Zhob and Gwadar. The project would prove helpful in ameliorating lot of the backward areas of KP, Punjab and FATA, which are terrorism-stricken and affected by massive population. The federal government is, therefore, requested to maintain the same alignment for the route as agreed upon by both the countries. If any changes were made, it would be very injustice with the KP and FATA, the resolution concluded. Taking the floor, Sikandar Sherpao said, “It is an important project which would have lasting impact on the socioeconomic lives of the people of KP and Fata. The project would benefit three billion population of the region besides adding 100 million dollars to the national kitty and generating 20,000MW electricity.” The project would also reduce the distance by 1,200 kilometres, he added. Sardar Hussain Babak of ANP in his address on the occasion said that their party would support the PTI if Imran Khan staged a sit-in against changes in the trade route in Peshawar. Provincial Minister Shah Farman said that it would be great injustice with the people of KP if any change were incorporated in the proposed trade route. He maintained that it is time for maintaining harmony and national cohesion instead of opening a new Pandora box. He urged the federal government to review its decision to this effect. KP Assembly on Friday also passed a unanimous resolution demanding conferring of Hilal-e-Istiqlal on the people of the province for exhibiting bravery and valour in the war against terrorism. The joint resolution of the treasury and opposition benches, carrying the signatures of MPAs Sardar Hussain Babak, Syed Mohammad Ali Shah Bacha, Malik Behram Khan, Sikandar Hayat Sherpao and Shahram Khan Tarakai, was read out by Provincial Minister for Information Mushtaq Ahmad Ghani. The resolution said that as the residents of Khyber Pakhtunkhwa for last several years are in grip of deadly and wild terrorism, the bravery exhibited by them during this ongoing war against terrorism has no precedent. The provincial assembly of the province in recognition of the magnitude of the bravery and patience shown by the people of Khyber Pakhtunkhwa in combating terrorism, its victims, and for expressing sympathies and encouragement feels for demanding conferring of civil award on them. Therefore, the provincial assembly strongly demands from the federal government that on the pattern of the awarding Hilal-e-Istiqlal on the people of Sialkot, Sargodah and Lahore for exhibiting bravery and valour during Pak-India war of 1965, the conferring of such award on the people of Khyber Pakhtunkhwa for exhibiting patience, bravery and valour in the war against terrorism. Speaker Asad Qaiser put the resolution to vote and the house adopted it unanimously. Meanwhile, the splinter group of Pakistan Tehrik-e-Insaf in the provincial assembly on Friday strongly criticised the PTI-led coalition government accusing them of using unfair means in the provision of jobs to the needy persons. Talking to mediamen in front of the ssembly building after the session, PTI MPAs Mehmood Jan and Qurban Ali Khan, leaders of PTI forward bloc, alleged that Adviser to Chief Minister for Prisons Malik Qasim Khan massively violated the recruitment policy and appointed 780 Class-IV employees in his department without any merit and obtained commission on every appointment he made. They further said that Adviser to Chief Minister for Environment Ishtiaq Urmur has also made illegal appointments in his department as well as in his constituency. They said that chief executives of Lady Reading Hospital, Khyber Medical Hospital and Hayatabad Medical Complex have made low cadre appointments without any merit in their respective health institutions. They said that they would take up the matter with PTI chief Imran Khan and would also submit an application to this effect in Right to Information Office for necessary action. They also criticised Speaker Asad Qaiser for not giving them chance to speak on the subject matter on the floor of the assembly. =================== QUETTA: (Dunya News) – A motion in Balochistan Assembly has been moved on Saturday against alleged changes in the Gwadar-Kashghar economic route. The motion was moved by Zimrak Khan of Awami National Party (ANP) and Nasrullah Zehri of Pakhtunkhawa – Milli Awami Party (PK-MAP). Chief Minister Balochistan Abdul Malik Baloch told on this occasion that Federal Minister for Planning and Development Ahsan Iqbal will brief the house on 6th of May regarding this issue, reported Dunya News. Balochistan Assembly was presided over by Speaker Jan Muhammad Jamali and a number of issues were taken up on this occasion. The session started off with prayers for the laborers who died in Turbat, security forces officials who died in Meekhtar and former minister Nasir Jamali. One-minute silence was observed for the death of MPA Ghansham Das. Heated debate was observed on death of 5 children in Qila Saifullah off anti-measles vaccination and allotment of plots in Gwadar. On the issue of allotment of plots in Gwadar, Abdul Malik Baloch said that he will brief the house on this issue on May 5. CM Balochistan assured the house that he would personally inform the members of the assembly and the people of Balochistan on Reko Diq and the project will go exactly according to the wishes of the people and representatives of Balochistan. Assembly’s session was then postponed till April 21 4 pm. =============